MTI Wireless Edge 2025: Record revenue, stronger cash, and a bigger dividend
MTI Wireless Edge has posted a record year. Revenue topped US$51.5m, up 13%, with profit from operations up 29% to US$5.81m. Earnings per share climbed 17% to 5.86 US cents and the final dividend is nudged up 3% to 3.4 US cents. Net cash rose to US$9.4m, giving the Group plenty of financial flexibility heading into 2026.
The headline story is simple: defence demand, disciplined execution and solid cash conversion drove a quality step-up in profitability. Below I unpack what moved the needle, where momentum sits, and what retail investors should watch next.
Key numbers at a glance
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | US$51.5m | US$45.6m | +13% |
| Profit from operations | US$5.81m | US$4.51m | +29% |
| Profit before tax | US$5.41m | US$4.81m | +12% |
| Net profit | US$4.66m | US$4.19m | +11% |
| EPS | 5.86 US cents | 4.99 US cents | +17% |
| Operating cash flow | US$7.0m | US$3.1m | +128% |
| Net cash (year end) | US$9.4m | US$6.0m | +US$3.4m |
| Final dividend | 3.4 US cents | 3.3 US cents | +3% |
By my maths, the operating margin improved to roughly 11% in 2025, reflecting a stronger mix and cost control.
What powered the performance
Defence-led growth across the Group
Defence represented 49% of Group revenue in 2025, underpinned by higher global government spend and restocking. Enquiries and pipeline are described as the strongest MTI has seen, and that theme carries through each division.
Antenna division: military mix and 5G optionality
- Revenue up 11% with operating profit up 15% as higher-margin military shipments accelerated.
- Military antenna sales jumped 50% year on year and made up 55% of divisional revenue.
- 5G E-Band backhaul sales were softer due to a pause in India, but demand for MTI’s ABS® antenna solution began to pick up, providing medium-term potential as roll-outs resume.
- Together, military and E-Band 5G accounted for over 70% of antenna revenue in 2025, positioning the mix for future growth.
Why it matters: more military work usually means better margins and stickier programmes. The ABS® solution gives optionality into 5G without relying on a single geography.
Water control & management: recurring services and market expansion
- Revenue up 10% with growth across Israel, North America and Europe; services and maintenance continue to build recurring income.
- Operating profit was lower year on year as MTI invested in development and marketing, in line with plan.
- New fountain management wins now cover over 70 fountains across four cities, with two more projects due by end-2026.
- Post year end, MTI acquired the remaining 50% of Mottech Parkland in Australia. Australia contributed about 10% of Mottech’s 2025 revenue and is seen as a key growth market.
Why it matters: recurring service revenue improves visibility. Investment depressing near-term profit is acceptable if it feeds a larger installed base and higher lifetime value.
Distribution & professional consulting services: breakout year
- Revenue up 20% and operating profit up 400% versus 2024.
- PSK moved from a loss to profit; MTI increased its PSK ownership to 60% during 2025.
- Backlog and pipeline into 2026 look healthy, primarily from government defence programmes.
Why it matters: this division amplified Group profit growth in 2025 and is tightly linked to defence spending cycles. The improved PSK performance and higher ownership strengthen control over a growing earnings stream.
Cash, capital returns and buybacks
Cash generation was a standout. Operating cash flow of US$7.0m broadly matched EBITDA and more than doubled year on year, lifting net cash to US$9.4m. The Board has hiked the final dividend to 3.4 US cents per share and extended the share buyback programme to March 2027. As at year end, 2,343,000 shares were held in treasury.
Why it matters: a net cash balance, rising EPS and sustained buybacks point to a shareholder-friendly stance backed by cash, not promises.
Geography and customer concentration
- Israel was 70% of sales in 2025 (US$36.3m), with America at US$5.8m, EMEA at US$5.9m and Asia Pacific at US$3.5m.
- There is one customer at 12.4% of Group revenue, spanning the antenna and distribution segments.
This footprint reflects MTI’s roots and current demand patterns. It also flags two watch points: dependence on the Israeli economy and supply chains, and some customer concentration.
Management, governance and outlook
2025 was marked by the passing of founder and Chairman, Zvi Borovitz. Amalia Borovitz Bryl has taken the Chair, and the teams delivered strongly during a difficult period. Management guides to a solid start to 2026, supported by an increased order backlog and a substantial pipeline across all three divisions.
There is a caveat on currency. If the US dollar remains weak against the Israeli shekel, reported results may face a translation and cost headwind. Management is not guiding on FX, which is sensible, but it is one to track this year.
My take: quality progress with clear tailwinds
- Positives: record revenue, improved margins, 17% EPS growth, strong cash conversion, higher dividend, extended buyback, defence exposure rising, PSK turnaround, and continued innovation in antennas and water.
- Negatives: FX risk (USD vs NIS), softer 5G demand in India during 2025, lower operating profit in Water due to investment, heavy revenue skew to Israel, and a single customer at 12.4% of sales.
Overall, this is a confident set of results. The defence upcycle is doing the heavy lifting now, but MTI is not a one-trick pony. The ABS® 5G backhaul opportunity and Mottech’s expanding services give diversification and future growth levers. With net cash and ongoing buybacks, shareholders are being paid while they wait.
What to watch in 2026
- Order conversion in defence across Antennas, Distribution and PSK.
- Resumption of E-Band 5G backhaul orders in India and broader ABS® adoption.
- Water division margins as recent investment translates into higher recurring revenue.
- FX trend between USD and NIS and any impact on reported margins.
- Cash generation versus dividend and buyback outflows.
Important dates and shareholder actions
- Final dividend: 3.4 US cents per share, payable on 14 April 2026 to shareholders on the register at close on 27 March 2026 (ex-dividend 26 March 2026).
- Shareholder presentation: scheduled for 10.00 UK time on 12 March 2026.
In short, MTI exits 2025 with record sales, stronger profitability and more cash in the bank. If defence momentum holds and 5G normalises, the ingredients are in place for another year of growth.
